Union blasts SkyCity ‘corporate welfare’ hope

THE CHANCE of ratepayers and taxpayers footing the bill for a massive $128 million blow-out in the cost of the SkyCity National Convention Centre is being widely condemned.

The Taxpayers’ Union said the Government should not bail out SkyCity and slammed the Convention Centre deal as ‘‘corporate welfare’’. Labour says any taxpayer subsidy would be appalling and the Greens says the centre is a financial flop and should be cancelled.

And local councillors say Auckland ratepayers should not have to pay for a blow-out, either.

Economic Development Minister Steven Joyce raised the prospect of the Auckland Council chipping in to help fund the project, after new estimates revealed the cost could blow out by as much as $128 million.

The increase in cost could leave taxpayers on the hook for any shortfall, but Joyce said the council could provide some assistance.

‘‘If you look at the Wellington Council, they’ve just done a deal to do a convention centre there, a much smaller one, but they’ve under-written some operating costs and that might help was well,’’ he told Radio New Zealand.

SkyCity said it wanted taxpayers to help foot the new bill, which it said was due to a rise in construction costs.

Chief executive Nigel Morrison told Radio NZ the Government will need to help plug the funding gap, but he would not say by how much.

Howick councillor Dick Quax said the money would be better spent on the city’s much-needed transport projects, several of which have been delayed due to funding pressures.

‘‘It could be the beginning of an endless group of corporates coming to the council with their hands out. I don’t support corporate welfare at all.’’

North Shore councillor George Wood said councillors were almost certain to reject any call to fund the convention centre.

However, Orakei councillor Cameron Brewer said a financial contribution should at least be considered.

Auckland mayoral spokesman Glyn Jones said there had been no talks between the council and the Government over the convention centre’s funding.

‘‘The agreement to build the New Zealand International Convention Centre is between SkyCity and the Government,’’ he said.

SkyCity agreed to build the convention centre in exchange for an increase in the number of pokie machines and gambling tables.

The Taxpayers’ Union called on the Government not to bail SkyCity out. ‘‘If SkyCity underestimated the cost of the centre when they signed the deal, that’s their problem,’’ executive director Jordan Williams said.